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To use GDR proceeds for subscriber acquisition: Dish TV
In an exclusive interview with CNBC-TV18, Jawahar Goel, Managing Director of Dish TV, spoke about the latest development in the company. Also watch the accompanying video.
Dish TV has raised USD 100 million via a global depository receipt (GDR) issue at Rs 39.80, confirmed its Managing DirectorJawahar Goel. "The proceeds of the GDR will be used for subscriber acquisition," he said, adding that further fund raising is not required.
In an exclusive interview with CNBC-TV18, Goel talks about the latest development in the company.
Below is a verbatim transcript of the exclusive interview with Jawahar Goel on CNBC-TV18. Also watch the accompanying video.
Q: Can you confirm the details of the global depository receipt (GDR) issue that you have concluded? A: It is 11% spended capital of Dish TV and the price we had negotiated is Rs 39.80 as per SEBI rules and USD 100 million.
Q: Your enabling provision though was for USD 200 million and it was eitherGDR or FCCB, will you raise another USD 100 million via some otherinstrument? A: For the time being, as per our business plan, we are okay about it and I cannot comment on the remaining.
Q: What is the primary use of the money that has been raised via the GDR? A: This money will be used for funding the subscriber acquisition whereby we have to subsidize the new subscriber acquisitions.
Q: What do you mean by subscriber acquisition cost; how exactly will it be spent? A: We are into subscriber acquisition. Our subscriber acquisition cost per subscriber is around Rs 2,500 and other competition is somewhere around Rs 4,000. So if we are acquiring 2.5-3 million subscribers, we need to invest more.
